A trade confirmation is a formal notice that records the details of an executed transaction in a security, including the instrument, quantity, execution price, trade date, and the parties involved.
What it is
A trade confirmation is the broker-dealer's official record issued after a transaction in a security is completed. It confirms the essential details of the trade, including the security, quantity, execution price, trade date, and the parties involved.
What information it typically includes
Security name or ticker
Quantity
Execution price
Trade date and time
Settlement date
Counterparty or broker identifiers
Any commissions or fees
Trade identifiers such as a trade ID or order ID
How it is used
Record-keeping and archiving for the investor and the broker
Reconciliation with custodial statements and internal ledgers
Tax reporting and cost basis calculation (where applicable)
Dispute resolution by comparing confirmation details with order tickets and execution reports
Context in market microstructure
Trade confirmations are typically issued after a transaction is executed and may be followed by related documents such as settlement notices. They serve as the investor's reference point for confirming what occurred and for cross-checking against other records.
Example Usage
After a transaction in ABC Corp is completed for 300 shares at an execution price of 45.20, a trade confirmation is issued showing the security, quantity, price, trade date, and settlement date.
Related Terms
Execution report · Order ticket · Settlement · Clearing · Trade date